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The Outlook for Pharmaceuticals in Central & Eastern Europe
Date:11/15/2011

market is largely driven by import growth; the value of imports increased by a double-digit CAGR between 2006 and 2010. Whilst the large population creates demand for pharmaceuticals, the low GDP per capita means that patients are unlikely to be able to afford the more expensive drugs and will settle for the cheaper alternatives.

RUSSIA

The presence of foreign manufacturers is increasing in Russia. A number of agreements have been made in 2011 between domestic and foreign companies that will benefit the Russian pharmaceutical market. These include a joint venture between India's Aurobindo Pharma and Russia's OJSC Diod; a licensing agreement between Norgine and Nycomed that gives the latter exclusive rights to commercialise MoviPrep in Russia; investment by Rusnano, Russia's government investment company, in Cleveland BioLabs' new subsidiary, Panacela Labs, which will develop a portfolio of new preclinical drug candidates in Russia; Pfizer and ChemRar High Technology Centre signing a memorandum of understanding to explore a collaboration focused on the research, development and commercialisation of innovative drugs in Russia; and the launching of Pro Bono Bio as a new international pharmaceutical company as a result of a three-year Anglo/Russian project.

UKRAINE

In June 2011, the Cabinet of Ministers adopted the state target scientific-technical programme for the development of new technologies to create domestic pharmaceuticals, which is designed to meet the human and veterinary medicinal needs of 2011-2015. State funding will account for almost half of the budget for the programme. A quarter of state funding will be used for the research & development of molecular and cellular technologies for creating biologically active substances. Investment funds will be used primarily to purchase modern equipment for the production of innovative medicinal substances, including immunological agents, vaccines and recombinant proteins.

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